Author Archives: ISBTC Blogger

FAQs about IRAs

An IRA is an individual retirement account that is used as a tool for people to earn and earmark funds for retirement savings. Retirement may seem far away, but the earlier you start the save, the better off you’ll be! These accounts can hold more money than any other type of retirement account. You have flexibility when choosing investments and minimizing taxes, which means an IRA can play a huge role in how prepared you are for retirement. With that said, many people don’t fully understand how IRAs work; they can be confusing. As a result, there are many questions that arise when talking about IRAs.

Here are a few:

What does an IRA earn? – In simple terms an IRA is just a trust that is established with certain tax rules. More specifically, it’s a security blanket for your money. CD accounts, money market accounts, saving accounts and brokerage accounts can be IRAs.
Who can open an IRA? – Anyone under the age of 70 who earns a taxable income can contribute to a traditional IRA. Roth IRAs, however, have additional income restrictions. And for those who are under the age of 18, many banks, credit unions, and other financial institutions will allow an adult to set up a guardian IRA. However, the guardian will have control of those assets until the child is 18-21. To clarify, children who have a part time job can contribute to their IRA if they have earned income from a job. They just cannot contribute more than that income!
How do I open an IRA? – You can choose where to open an IRA, if you don’t already have an employer-sponsored retirement plan. Often you can go to banks, credit unions, brokerage firms and mutual fund companies. It never hurts to do more research and ask questions!
Am I able to contribute to someone else’s IRA? – Yes, but only if it is your spouse and if you file a joint tax return.
How do I invest into my fund? – Fortunately, the IRA gives you the option on how you want to invest your money. That includes stocks, bonds, and mutual funds. Furthermore, you can invest how you want or you can have your IRA managed for you by a financial professional.

IRAs can be a tricky subject, but hopefully with the answers to these frequently asked questions we were able to help you with some beginner’s knowledge. If you have more questions or are wanting to set up an IRA, we would be happy to help. Contacts us today!

What Every College Freshman Should Know About School

In a 2016 study, it was found that 43% of students do not track their spending while 58% said they do not save money every month. From that, it is shown that 7 out of 10 students are stressed out about their finances. It can be quite the adjustment for students to transition from high school to college. This new stage of your life can be filled with many mixed emotions and late night adventures. In just a matter of time you are living in a brand new environment, meeting new people, taking new classes and trying to figure out how to “adult.”

Trying to manage your money and set a budget are probably the last things you want to do, but it needs to be done. College can be exciting, challenging and rewarding all at the same time, so developing money-management habits early on is worth your time and effort. College tuition increases every year, and having tips on how to manage your budget can easily reduce additional financial stress.

Here are 3 ways you can cut costs while in college:

Buy Used Textbooks – As a freshman you will most likely take quite a few general education classes, which means more books at a higher price. To reduce costs, buy used ones; just one book can cost hundreds of dollars. You can also search for books on websites like Amazon and Chegg before looking at your university bookstore. Both places offer rental textbooks with a simple process to receive and return them. Keep in mind that you don’t have to buy your textbooks before school starts, it is often good to wait until the first week of classes to ask your professors about whether you need the book or if you could buy an older edition where it may be cheaper!
Purchase a Coffee Maker – When you’re a full time student, most of your time is spent on studies. Those early morning iced coffees and late-night lattes can add up fairly quickly. In an article from USA Today, studies have shown that college students have spent nearly $1,100 per year on coffee. To cut back on those costs, consider buying a coffee maker for your dorm or apartment instead of racing to the nearest coffee shop.
Find the Good Deals – Chances are your college town will offer student discounts. Take advantage of them! There are hundreds of companies that apply student discounts. Research and ask to find the best deals around town. Some discounts may be small and some significant – either way it can save you money. If you’re looking to buy textbooks on Amazon, Amazon Prime will offer a free six-month membership that includes free shipping. Looking for a new computer before school? Dell and Apple provide a certain percentage off of your purchase with an official school email address. Taking advantage of discounts can also provide fun, cheap entertainment for you and friends to have a night that you’ll always cherish.

College is a new and exciting part of life, just remember to track your spending and manage your budget. With these few tips we hope this will help reduce costs and save you more money! If you’re looking to work on your savings skills, open a savings account with us today!

5 Fun Money Challenges to Try

Finding different ways to save can be tough, however, we want to encourage you to stay on track and jumpstart your finances. With these fun money challenges, you can push yourself to become the savvy saver we know you can be!

52 Week Face Off

Instead of changing your spending habits overnight, try this challenge. Over the course of the year, you’ll end up with a grand slam total of $1,378. Start by putting one dollar in a jar the Monday of week number one. Increase it by a dollar each consecutive week to watch your savings grow. This means week two will get two dollars, then up to fifty-two on the last week.

Spare Change Stash

Those extra coins and dollar bills can add up in a hurry if you let them. Have your hubby or gal add to the stash as well to increase the amount saved. You can let this fund go towards a trip or that new couch you’ve been wanting. Challenging yourself to add to it every day, whether it’s a few leftover pennies or a couple dollar bills, will keep you engaged in your game.

No Spend Ordinance

Designate a “No Spend Day.” Every week, plan out your expenses so you will not spend a dime on Tuesdays – or whatever day you choose. You can also begin to track your expenses, as mentioned below, and cut out the luxuries. By only spending money on the necessities, you will have a greater appreciation for the little things… and a larger wallet!

Tracking Tangent

Track every single expense you make, even if it just costs a quarter. Try starting out with thirty days and lengthen the amount of days you track as time goes on. When you see what you spend money on, you’ll notice what items you can do without. Categorizing necessities against wants is a big step in deciding what you will continue to put cash towards.

Dine-In Deluxe

Eating out can put a dent in your wallet – and fast! Challenge yourself to eat at home for 30 days. You can find healthier recipes to test out and try new foods you may have not tried before. Look up different money saving recipes online to further your riches. Dining in can be a great way to spend quality time with your kids or loved one.

These money challenges have been tried and tested to help all types of savers. Put some of these ideas into action to grow your account. Once you have some cash to stash away, our savings accounts can help you have an accessible, safe place to put your new-found funds. Stop on in today to discuss your options!

Ways You Can Teach Your Kindergartner About Finances

Finding ways to make money fun can be difficult when working with your little one. However, starting money management off right when they’re small is a must! Use these tips and tricks to teach your kid to be a successful money master.

Utilize Clear Jars

Use a clear jar to allow your child to see their money grow. Just talking about how their dollar from yesterday is two dollars today doesn’t click for them. Let them put money into a place where they can continuously see it grow larger and it will maintain their interest in the saving lesson. Show excitement when they add to it because if mommy or daddy is enthusiastic, they will be too!

Start an Allowance

Help your child learn that time is money. Unloading the dishwasher could be worth a dollar while folding all the laundry could be worth two. If one job takes longer than the other, show that with the amount they obtain. Increasing the amount as they age can also show them how you grow with the jobs you get because of your new level of education. Help them see that money is earned, not just given.

Make It Visual

Your youngster will not understand the concept of saving by simply discussing it. Their short attention span calls for some innovation. Make a chart for chores to help them stay on task by coloring in a square next to the chore when it is complete. Different colors can help classify the item as more money or higher importance.

Teach Them to Give

Generosity is also an important lesson to teach at an early age. Have your child pick a cause they are excited about – pet shelters, for example, are a great choice! Your child can see where and what their money is going to. Helping others is a great quality to establish for the future. If they don’t know where to donate to, give them options such as the donation plate at church or a local food shelter. You can also find a place to volunteer their time if money isn’t an option.

Introduce a Side Job

If your kid wants a LEGO set, and they want it now, show them additional chores to do as a side job. Giving them extra ways they can make money here and there can teach them to have a high work ethic. Sometimes you need to work a little more to get the money you need. Setting up a “For Hire” board can help your kindergartner pick up some extra cash by sorting dirty laundry, emptying trash cans or picking up their toys before mom or dad mows the lawn.

These ideas will help aid you in teaching your kids that money doesn’t grow on trees. If you’re looking for other financial lessons and ways your child can learn about saving, stop on in. We’d love to set up a savings account for your youngster!

Savings Tips for College Students

Exciting adventures wait for you while away at college. However, your spending habits may put a damper on the fun. Don’t become one of those students who falls into a deep hole of debt. Stay afloat with some of these simple tips you can implement today!

Avoid Late Fees

Late fees sneak up and build in a hurry. Be sure to utilize apps that will remind you when bills are due and cancel anything unnecessary such as cable or gym memberships.

Limit Eating Out

Going out with friends every Thursday, Friday and Saturday is fun for you, but not your wallet. Limit yourself to two or three times a month. Find some friends to stay in and cook with you – everyone is always up for saving cash!

Establish Good Credit

In college, it can be very easy to slide downhill into bad credit. Work off paying loans on time and establish some savings. This will help you stay on top of your finances, allowing you to have the credit needed to make large purchases, like a car or a home, once you graduate.

Bike It

No need for an expensive new car while working on your education. Continue saving your money instead and buy a bike. It will get you where you need to go – and cost you nothing! Plus, you get a nice workout in as you get from place to place.

Search for Student Discounts

With a school ID, students can get some pretty sweet deals. Before you go out, know where to go and who offers cheaper products and prices for students. Do some research and reap the savings.

Split Grocery Costs

Your roomie wants to save as much as you do. Split your grocery bill when shopping together. You can focus on making casseroles, soups and crock pot meals that will leave you with leftovers for work or in between classes the next day!

Check Out Campus Events

Instead of spending more money off campus, try looking into what your school is already doing. Many schools offer students free tickets to certain events – and they’re worth going to! Grab a few buddies and see what your campus has to offer.

Open a Savings Account

Savings accounts earn interest, so why wouldn’t you want to open one? Work on your financial finesse by letting us help you save your hard-earned money.

These tips are great for college students looking to get better with their finances. If you’re looking for a little more direction, let us help. We’re just a phone call away!

Cyberbullying: What to Know as Your Kids Start School

Cyberbullying is not fun to talk about. With school creeping up, technology and social media use will be on the rise. Talking about cyberbullying to make your child or children aware of the subject is a step in the right direction. What you may not know is that cyberbullying is any type of harassment, taunting, or threats made on different social media platforms. It is so common these days that sometimes it is unrecognizable. Kids may think the post is funny without thinking about their peer, resulting in them not even defining it as a form of bullying.

With just a click of a button, a demeaning or embarrassing message can quickly be spread to thousands of people. Here are some things you should know about cyberbullying while the school year is in play:

Websites and Apps: There are many different social media platforms out in the world today, for instance: Facebook, Twitter, Instagram, Snapchat and YouTube, where cyberbullying can reach children even in places where they feel safe. It can spread faster and further to more people and can occur any time of the day. Cyberbullying is different from bullying, as online posts can cause more confusion and emotions than in-person communication. With cyberbullying, there is no escaping online interactions. This is where you can become aware of the social media platforms your child/children are using. Have regular conversations with your child and discuss examples. Do this so they become conscious of the issue, so if they ever become victims or witness it themselves, they can either try to communicate the issue or know ways to fix it.

Cyberbullies Can Act Anonymously: People who participate in cyberbullying may use an anonymous cloak to hide behind. In other words, it may not always be clear who the person is behind the screen. This can be troubling because it ultimately encourages them to be more audacious and difficult to trace. Once again, become aware of the sites your children are using. Also, do not assume that your children will not participate in cyberbullying. As hard as it may seem, even the nicest kids can get swept up in the moment of tormenting another peer as the acts may not seem real. It’s best to be a role model, monitor your own social media and make it clear that bullying is not tolerated no matter the form.

Cyberbullying vs. Just Being Kids: When school starts, children tend to use social media more often than not. They like to use online as a way to email, chat, watch videos, send messages, play games and do homework. It is important for them to know the differences between cyberbullying and the factors of “just being a kid.” The intentions and context of their behavior are crucial when trying to decide if cyber bullying is occurring. Being mean can be accidental, but when tools are used over the internet to intentionally make someone upset, that is cyberbullying. You can help explain to your child that being online is a place to be responsible and respectful. Help them develop ways to communicate in a responsible manner.

We hope this information brings awareness to you and what your child/children might deal with throughout the school year. It is time to come to terms with the fact that no matter what you do as a parent, your child will be exposed to social media. It is your responsibility to guide and educate them on the correct way to use it.

Back to School Savings Tips

Back to school shopping can be dreadful. Trying to buy new school supplies for your kids or yourself can be crazy expensive. Luckily, these 5 saving tips might just be the key to school supply shopping success.

Do a Closet and Supply Sweep

Don’t be alarmed, but there may be school supplies lying around your house! Before rushing to the store to buy brand new school supplies, you may want to check in between your couch cushions and in desk drawers. By doing this, you may find school supplies that were bought years prior that have not been used. Finding previous school supplies that are on that list will help you save money by not having to buy brand new products. You may have most supplies already!

To avoid forgetting that you may have school supplies lying somewhere around the house, start collecting the items that you already have and put them in a central location. This will allow you to keep track of what you already have, so you don’t end up wasting time or money!

Hit up the Dollar/Thrift Store

You don’t have to buy everything here, but for items such as: loose leaf paper, staplers, erasers, pencils, rulers and clothes, you sure could get a deal. Buying such items at the Dollar Store or Thrift Store will help save you money before going straight to the major department stores. Shop at these places first for basic supplies and then go to the main stores to find the rest of what you need! This may take some planning ahead, but you can score some amazing bargains.

Use Coupons

When school starts approaching, you may want to look at your Sunday paper or online for coupons! Sites like RetailMeNot have a special section on their site for school supplies. Also, keep in mind that stores, like Walmart, offer price matching. Check ads every week, and keep an eye out for sales! Doing these things should help maximize your savings.

Start Early!

You can start early, but not too early. As soon as you see school supplies go on sale, begin shopping. If you wait too long, you might miss out on those bargain deals or the opportunity to have the best notebook and pencils! Getting a jump-start gives you time to shop around and compare deals. With shopping early, you have the option to buy in bulk. That way during the school year, you’ll have back-ups at home when it’s time to re-stock.

Hold off on buying the ‘popular’ gear

The only good thing about going back to school might be the new clothes, gear and school supplies, but that does not mean you have to spend hundreds every year. Most of the time the ‘popular items’ will be very expensive and then become not so ‘popular’ after the first month of school, so hold off on buying those and try to invest in the quality of items. You want to be able to get the best bang for your buck!

We hope these 5 tips will grant you success when shopping for school supplies! We wish you and your family the best for this school year!

What to Consider Before Adding a Furry Family Member

As we’re all obsessed with the adorable puppy pictures on Instagram and kittens in cups, it’s easy to understand why we’d want one of our own. However, whether you’re looking to teach your children about responsibility or just want a furry family member, there are a few things you should consider before making the addition.

Can you afford it?

According to the SSPCA, vaccinations, medications, litter, collars, food, checkups and grooming can add up to a bill of at least $1,000 a year. This doesn’t even include toys, a dog house, fencing for your yard and so on. Be prepared to budget out your funds, so affording a pet doesn’t overcome your finances.

Do you have the time?

Even though you’d love an animal to snuggle up with at night, you must think about the amount of time it takes to care for it. Your lunch breaks will have to be spent going home to let the dog out, you need to add time to your schedule for walks and take less vacations.

Do you have a kennel and/or dog walker on hand?

If you travel, you will have to have someone care for your pet. A kennel will be a solution for housing your pet, but this will cost you. Pricing for overnight boarding can be anywhere from $25 – $45 a night. A dog walker is also another option to take care of your pet while you’re at work, but they charge anywhere from $15 – $30 for each walk.

What breed fits you?

A large yard and house means you can easily care for a big dog, but be sure to consider your animal’s size before trying to fit a large Labrador into a 200 sq. ft. apartment. Puppies are cute and small, but they can grow to be more than you can handle. Find a docile animal to fit your child’s personality or a hyper animal if you’re looking to have a companion ready to be on the go.

How much is grooming worth?

Depending on the breed you choose, you could be looking at a hefty grooming bill. As professionals charge $50-$100 for their services, your puppy will start to add up. Taking care of your pet is important, so you can’t skimp on grooming them regularly.

Do you have an emergency fund?

Let’s face it, pets have accidents too. Whether you need an emergency surgery or have to get Sparky fixed, these costs will add up. Preparing for the unexpected will help ease the financial stress that could be caused by unexpected bills.

Getting a pet is an exciting adventure – but remember all of the financial responsibility that follows. If you’re looking to add a furry member to the family, contact us today to set up a savings account for your pet’s emergency fund!

So You’ve Bought Your First Home: Savings 101

Congratulations! You’ve taken a big step in your financial future by purchasing your first home. As a new homeowner, you may be worried about the chunk of change you just spent, and your bank account may be looking a little slim right now. Luckily, Iowa State Bank & Trust Company is here with a few simple saving solutions to help your funds increase.

Slow Your Spending

As you have just made a big dent in your savings, now is the time to slow down on your purchasing behavior. Be sure to be aware of your spending habits. Don’t go shop for an extra pair of shoes or dine out multiple times a week, as that can add up in a hurry!

Revamp Your Emergency Fund

A bigger house means bigger emergency expenses. Put a little extra money here and there into your emergency fund to save up for problems such as needing a new roof, replacing a broken appliance or common plumbing issues. Being prepared means your bank account will take less of a hit since you have your emergency fund to fall back on.

Stretch Your Grocery Dollars

Eating out can cost you a fortune! According to the Bureau of Labor Statistics, the average household spends an average of $3,008 per year on dining out. Instead, find discount grocery stores such as ALDI in order to meet your budget. Setting a budget and only buying items you truly need will help stretch your money. Finding recipes for casseroles, soups and other large portion meals will help save money by creating leftovers for you to bring as lunch every day to work.

Don’t Buy New Furniture

Even though you’re excited and want to decorate your new home to the extreme, try to wait. Slowing down and taking the time to find second hand stores, garage sales and so on will help save you hundreds to thousands of dollars on furniture. It’s easy to do a little digging and find store-quality items.

Clean Out the Closet

As you’re already packing to move into your new home, now is the time to get rid of items you no longer need. Facebook Marketplace, Ebay and other online platforms allow you to easily sell items to others all over the world! Not only are you freeing up space in your new home, you’re making a few extra bucks along the way!

Being a homeowner is an exciting new journey, but keeping up with your finances can be a little hectic. These tips will help you put a few more dollars in your bank account while enjoying the joys of your new home!

Wedding Waivers – Ways to Cut Costs for the Big Day

Say ‘I Do’ to savings and “no” to debt on your big day. Weddings can grow out of control and expensive in no time when the planning begins. That’s why it’s important to learn savvy ways to save before you walk down the aisle. Luckily, Iowa State Bank & Trust Company offers a few creative ideas to trim your wedding budget.

Cut the Cake

Many couples now are ditching the idea of cake and doing mini cupcakes or a donut bar. Find something that fits your quirky personality and go that route. By making your own sweet treats with friends and family or outsourcing to a grocery store bakery, you’ll save big on cutting the custom made cake. Be sure to have your relatives make their favorite desserts to allow a widespread table of goodies.

Flower Power

As everyone knows, flowers can make or break a budget. However, you’re still going to dream of having the perfect bouquet when walking down the aisle to your hunny. To fix this, find another use for the bouquets such as becoming part of the decor after the wedding. Decorate the tables or dessert bar by putting the flowers in vases, so you can get the biggest bang for your buck. Be sure to use in-season flowers, as this will help you save big on importing costs for exotic blooms. You can also mix non-floral embellishments into the flowers to fill out the bouquets and make them yourself. This way you’re spending less on flowers, but they still look fabulous.

DIY Darling

With sites such as Pinterest, Etsy, DIY Network and more, you have a whole arsenal of ideas people have never had before. Getting crafty is easier than ever! Use these sites to find decor ideas that will look incredible but cost a quarter of the price. Get friends and groomsmen to invest their time into helping create your dream decorations.

Raise the Bar

Instead of a full open bar, you could offer beer, a red and white wine or a few signature cocktails. By doing this, you aren’t paying for every single alcohol imaginable. You want everyone to have fun, but this will help you enjoy your wedding too because you won’t be worrying about the thousands of dollars that could be waiting for you on the tab.

Big Day Borrow

Borrow, borrow and, oh, borrow! If a friend has a wedding veil they’re willing to loan you, use it! That could save you hundreds of dollars depending on what you had in mind for the wedding. Other girlfriends may have a pair of shoes or jewelry that matches perfect with your dress. You can also see what decor and items family members may have that you could borrow and use as decorations for the wedding.

We hope these ideas help stretch your budget for the big day! Stop in or give us a call if you need a little extra cash or credit in order to prepare for taking the next big step. Congratulations!